If your company invests in employee-related education expenses, you have probably asked yourself about the return on investment (ROI) you are achieving.
Most companies in North America — about 90 per cent — offer some type of educational perk such as payment for training or reimbursement for tuition costs of degree courses, according to the Society for Human Resource Management’s 1999 Benefits Survey.
What criteria should you use to assess the value of educational investments in your staff? The following are some points to consider.
Brain drain, downsizing create greater development needs
It is a given these days that the workforce needs continuous upgrading of skills and competencies. The so-called “brain drain” is creating openings at all organizational levels. While there is a huge need for technical skills, there is also a need for management skills. Employers can address the management gap by appreciating that employees can make the leap to management more successfully if they have the right education to propel them.
Professional development also enhances productivity. With the right kind of education, individuals immediately transfer the new skills to their job. In turn, they share that new knowledge with colleagues. As organizations run leaner, it is critical that employees increase their productivity.
A key employee
retention method
Educational investments also improve employee retention. Although companies originally began funding educational expenses to improve performance, this benefit has taken on an equally important role in attracting and retaining employees in a highly competitive job market. The fear that employees who finish their educational programs paid for by the company will immediately move on to greener pastures is not supported by research data.
Reimbursement for education is one of the top five methods used by companies to retain employees, according to a survey by HR consulting firm Manchester Partners International.
As well, when employees can participate in education in conjunction with their job, they don’t face the decision of leaving their job in order to pursue education full-time.
A recent Gallup poll found that employees not only enjoyed and appreciated education and training, but also are more satisfied with their employer when these opportunities are made available to them. And an overwhelming 99 per cent said they would appreciate even more education and training.
Assessing educational opportunities
There is a huge array of options when it comes to employee education. To ensure your company enjoys a solid return on your investment, here are a few ways to assess each opportunity.
1. Does learning have an emphasis on both theory and practice? You need to be sure employees can apply their new skills to their current job.
2. Will employees gain the competencies your organization needs?
3. Will employees gain the competencies they need to move forward on a defined career path?
4. Will the education make employees more valuable and productive to your organization?
5. Is learning tailored to the specific needs of your organization? Your employees’ educational goals should be aligned with the company’s needs.
6. Are ongoing courses offered at multiple locations, through distance learning or online? If an employee is transferred to another office location mid-way through a program, they need to be able to continue the program.
6. Are the programs selected for reimbursement by your organization accredited by provincial regulators?
7. Can the employee make a compelling case for your company to fund the education?
8. Is the program tailored to the needs of working adults? Ongoing courses should accommodate the needs of people who hold day jobs by offering classes at night and ensuring the workload is manageable for people who are already busy.
When these criteria are met, your organization’s funding of education can mitigate the effects of trends such as the brain drain and corporate downsizing while attracting, developing and retaining talented employees.
All educational opportunities are not created equal. Just as employee education can reap huge dividends, the time you take to evaluate educational opportunities is an equally important investment.
Craig Swenson is senior vice-president, University of Phoenix, Northwest Region. To contact the university’s Vancouver campus call (604) 205-6999.
Most companies in North America — about 90 per cent — offer some type of educational perk such as payment for training or reimbursement for tuition costs of degree courses, according to the Society for Human Resource Management’s 1999 Benefits Survey.
What criteria should you use to assess the value of educational investments in your staff? The following are some points to consider.
Brain drain, downsizing create greater development needs
It is a given these days that the workforce needs continuous upgrading of skills and competencies. The so-called “brain drain” is creating openings at all organizational levels. While there is a huge need for technical skills, there is also a need for management skills. Employers can address the management gap by appreciating that employees can make the leap to management more successfully if they have the right education to propel them.
Professional development also enhances productivity. With the right kind of education, individuals immediately transfer the new skills to their job. In turn, they share that new knowledge with colleagues. As organizations run leaner, it is critical that employees increase their productivity.
A key employee
retention method
Educational investments also improve employee retention. Although companies originally began funding educational expenses to improve performance, this benefit has taken on an equally important role in attracting and retaining employees in a highly competitive job market. The fear that employees who finish their educational programs paid for by the company will immediately move on to greener pastures is not supported by research data.
Reimbursement for education is one of the top five methods used by companies to retain employees, according to a survey by HR consulting firm Manchester Partners International.
As well, when employees can participate in education in conjunction with their job, they don’t face the decision of leaving their job in order to pursue education full-time.
A recent Gallup poll found that employees not only enjoyed and appreciated education and training, but also are more satisfied with their employer when these opportunities are made available to them. And an overwhelming 99 per cent said they would appreciate even more education and training.
Assessing educational opportunities
There is a huge array of options when it comes to employee education. To ensure your company enjoys a solid return on your investment, here are a few ways to assess each opportunity.
1. Does learning have an emphasis on both theory and practice? You need to be sure employees can apply their new skills to their current job.
2. Will employees gain the competencies your organization needs?
3. Will employees gain the competencies they need to move forward on a defined career path?
4. Will the education make employees more valuable and productive to your organization?
5. Is learning tailored to the specific needs of your organization? Your employees’ educational goals should be aligned with the company’s needs.
6. Are ongoing courses offered at multiple locations, through distance learning or online? If an employee is transferred to another office location mid-way through a program, they need to be able to continue the program.
6. Are the programs selected for reimbursement by your organization accredited by provincial regulators?
7. Can the employee make a compelling case for your company to fund the education?
8. Is the program tailored to the needs of working adults? Ongoing courses should accommodate the needs of people who hold day jobs by offering classes at night and ensuring the workload is manageable for people who are already busy.
When these criteria are met, your organization’s funding of education can mitigate the effects of trends such as the brain drain and corporate downsizing while attracting, developing and retaining talented employees.
All educational opportunities are not created equal. Just as employee education can reap huge dividends, the time you take to evaluate educational opportunities is an equally important investment.
Craig Swenson is senior vice-president, University of Phoenix, Northwest Region. To contact the university’s Vancouver campus call (604) 205-6999.
